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D. M&IE
Respondent argues that if petitioner is found to have been
“away from home” under section 162(a), the allowable Federal M&IE
rate should be reduced pursuant to the “partial day” rule and
further reduced by the 50-percent limitation rule of section
274(n)(1), as prescribed in certain revenue procedures.
Section 274(d) generally disallows a deduction under section
162 for “any traveling expense (including meals and lodging while
away from home)” unless the taxpayer complies with certain
substantiation requirements. Sec. 274(d)(1). The section
further provides that regulations may prescribe that some or all
of the substantiation requirements do not apply to an expense
which does not exceed an amount prescribed by those regulations.
Id.
Pursuant to section 1.274-5(g), Income Tax Regs., the
Commissioner is authorized to prescribe rules in pronouncements
of general applicability under which allowances for certain types
of ordinary and necessary expenses for traveling away from home
will be regarded as satisfying the substantiation requirements of
section 274(d). Beech Trucking Co. v. Commissioner, 118 T.C.
428, 434 (2002). Section 1.274-5(j)(1) and (3), Income Tax
Regs., provides the Commissioner may establish a method under
11(...continued)
2001-2 C.B. at 339; Rev. Proc. 2002-63, sec. 7.06, 2002-2 C.B. at
699; Rev. Proc. 2003-80, sec. 7.06, 2003-2 C.B. at 1045.
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